05 May, 2012

RM500 million Kedah Pakatan State Project Without Open Tender

In July 2011, Kedah Pakatan government initiated a government acquisition for a few parcels of land in Alor Star surrounding a previously abandoned project known as Plaza Tunku Yaacob.

The acquisition of the said land costing almost RM40 million is for a project known as Aman Central.

The development of the said project is estimated by the state to be worth RM500 million.

The state had awarded the project to a Penang based private company, which shall form a joint venture with Perbadanan Kemajuan Negeri Kedah (PKNK).

PKNK is a statutory body incorporated by the state and the chairman is Menteri Besar of Kedah.

Source: Warta Kedah.Net     Link: http://goo.gl/mNE1x

However, there was no Open Tender prior to the decision in awarding the joint venture to the said private company.

This is contrary to the pledge by Pakatan Rakyat in their Buku Jingga (Orange Book) announced last year.

In response, the state EXCO Dato Amiruddin Hamzah claims that there’s no Open Tender for the project because is a private initiated project. He further reveals that the private company holds 80% in the joint venture while PKNK only hold 20%.

Source:  Warta Kedah.Net    Link:  http://goo.gl/qlVe7

However, in the state gazette (Warta Kerajaan) on 9 Jun, 2011, it was stated that the acquisition of the said land was for the purpose of development by Perbadanan Kemajuan Negeri Kedah (see below).

Therefore, how could the development be turn into private initiated project? Worse still, there was no Open Tender conducted to award the development worth RM500 million.

It is also surprising why PKNK’s subsidiary such as Bina Darulaman Berhad (listed in the Main Board Bursa Malaysia with vast experience in development) was not given the opportunity to carry out the project.

As such, Kedah Gerakan Youth hereby demands Menteri Besar Kedah to explain clearly this issue and why there’s was no Open Tender for the RM500 million state project meant for PKNK.